Ceos In 10 Big Mergers To Get $430m: Equilar Study

The CEOs who've decided to sell in the 10 biggest U.S. deals this year are set to rake in an estimated $430 million in "golden parachute" payments, according to a study done by pay-tracking firm Equilar at the request of The Associated Press. [...] some critics say the packages are so lavish, they can be an incentive to strike iffy deals. Among the grab-bag of goodies in some packages are selling bonuses, cash for agreeing not to join a rival, severance, cash to help pay taxes, and lump-sum compensation for giving up corporate cars and other corner-office perquisites. Numerous studies have shown that many M&A deals are bad for shareholders of the combined companies in the long run. Since the financial crisis six years ago, big companies have mostly resisted the urge to merge. Halliburton's bid for rival oilfield services company Baker Hughes and Actavis' offer to Botox-maker Allergan. Without the deal to sell to Actavis, Pyott would have had to wait four years for all the options to "vest," which allows him to claim ownership and convert them to shares. Nearly all the pay is in stock awards that he would have had to wait years to receive if he didn't sell the orthopedic products company. The package includes $3.2 million in "long-time incentive" pay, based on 2013 figures in the company's regulatory filings. [...] his payout required what compensation experts call a "double trigger": He had to both sell his company and lose his job.

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